The 3 Major Hotel and Pub Business Risks that Need Insurance Coverage

Do you know the risks involved in running hotels and pubs?

Apart from the daily complex management of inventory and sales, hotel and pub owners need to secure that they have insurance plans in place when it comes to the three major business risks in their industry.

This post will inform you of the three major business risks that hotels and pubs need to secure with insurance plans. Preparation is always key in ensuring your continued business growth by assuring freedom from unwanted accidents, circumstances, and liability.

Upon finishing this post, you’d know just how important it is to have solid insurance plans to secure the continuous growth and development of your business. In going ahead and moving ever forward in any endeavor, it’s forever better to be safe than sorry.

Three Major Business Risks to Hotels and Pubs

Operating hotels and pubs entails the following major risks that need proper insurance coverage:

1. Property Risks

2. Liability Risks

3. Cyber Risks

Hotel and Pub Property Risks

Being in the hotel and pub industry involves the management of complex and meticulous daily tasks. Such tasks are open to fire and property damage as many digital and electronic appliances, machines, and gadgets are involved in food preparation and lodging services.

Hotels and pubs are also frequented by intoxicated clients that can easily introduce risks of arson and instances of vandalism. As such businesses store big amounts of liquor in storage, fires can easily escalate massively and damage fittings, fixtures, and expensive kitchen materials.

You wouldn’t want to be open to such risks given that daily operation can invite such circumstances.

Hotel and Pub Liability Risks

If you run and operate a hotel, you will be required by law to be duly insured when it comes to liability involving potential injury risks in daily business operations.

Hotels, as well as pubs, can be held liable for so many personal injuries that can take place within the establishment. So long as the injury or accident was incurred within the vicinity, liability can attach. Claims for liability is a common administrative concern that hotels and pubs deal with.

This kind of liability is inevitable because regular customers can be injured from accidental falls and slips. Such risk is higher with intoxicated guests.

Hotels and establishments with play areas and playgrounds are also open to liability as children are vulnerable to accidents.

Hotels and pubs that serve hot food and beverages are also open to the risk of being liable to customers that suffer from burns and scalds.

Hotel and Pub Cyber Risks

Robust digital security is essential in running businesses today as customer data can now be subject to theft. Marriot Hotel recently suffered from a cyber attack that exposed the data of its over 500 million customers. Such an event triggered numerous suits that opened the Marriot Hotel to liabilities. If such a thing can easily happen to an international hotel empire, any hotel and pub business can also be easily at risk. Given that you’re already aware of such a possibility, not having an insurance plan that can secure your business from such liability is a form of self-sabotage.

Apart from the theft of customer data, hotels and pubs are also open to the following cyber risks:

1. IT system breakdown – you will be extremely open to risks and liabilities if you run a business that is highly dependent on an integrated IT system. Running a digital platform for reservation management, online booking, housekeeping, inventory, and point of sales will cause you so much trouble if you’d experience an internal or external cyber attack.
2. Network breach – not only are customer information at risk, but actual guests’ data and WiFi activity can also be targeted by hackers.
3. Password Breach – hackers can infiltrate your business’ entire system including sales. If infiltrated, hackers will be able to easily transfer money from your bank account to dummy bank accounts owned by them.

Secure Your Business Now

Today’s flood of information is such a privilege. Failure to make use of all is such a waste.

Now that you know the many risks that hotels and pubs are open to, the next best thing to do is to ensure your security.

You can easily avoid liability and have optimum security if you’d opt to have insurance plans. If you have an insurance plan, you need not worry about costs, damages, and liabilities, as all will be tended to and paid for by your insurer.

If you run a hotel or pub and you’re looking for Hotel and pub insurance Australia, it’s best to opt for one that already covers risks in property, personal injury liability, business interruption, management liability, corporate travel, and cyber attacks.

Make It Easy

If you don’t know where to begin and you’re clueless as to information and requirements that you’d need, it’s best to contact insurance specialists and brokers that can guide you every step of the way like Matrix Insurance Group. Matrix Insurance Group works with over 120 different insurance companies so you can be sure that they can provide plans that can cover all your business needs. When looking for agents and brokers, ensure that they can easily explain every single aspect and factor in the clearest way possible.

Hotels and pubs have very special insurance needs. Secure business growth and stability by ensuring that all risks to liabilities are tended to by robust insurance plans. If you run a hotel or pub business and you’re not properly insured yet, now is the time to make a move. Plan everything carefully and choose plans wisely!